Exhibit 11.1

-Refer to Exhibit 11.1.What does the intersection of the upward-sloping supply curve of labor with the downward-sloping demand curve for labor determine?
A)minimum wage, W, and the level of employment, E
B)maximum wage, W, and the level of employment, E
C)equilibrium wage, W, and the level of employment, E
D)supply and demand of wages
E)supply and demand of employment

Question

Exhibit 11.1
 
-Refer to Exhibit 11.1.What does the intersection of the upward-sloping supply curve of labor with the downward-sloping demand curve for labor determine?
A)minimum wage, W, and the level of employment, E 
B)maximum wage, W, and the level of employment, E 
C)equilibrium wage, W, and the level of employment, E 
D)supply and demand of wages 
E)supply and demand of employment

Quizplus · Accepted Answer

The intersection of the upward-sloping supply curve of labor and the downward-sloping demand curve for labor determines the equilibrium wage, W, and the level of employment, E. This is where the quantity of labor that firms are willing to hire equals the quantity of labor that workers are willing to supply at a certain wage rate, resulting in no excess supply or demand of labor, and thus determining the equilibrium wage and level of employment.

Exhibit 11.1 -Refer to Exhibit 11.1.What Does the Intersection of the Upward-Sloping